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The Institutional System of Fiscal Policy Coordination

In: Fiscal Policy without a State in EMU?

Author

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  • Jani Kaarlejärvi

Abstract

Rationales for fiscal policy coordination in EMU are one of the most challenging topics on the current European economic agenda. This current relevance stems from the fact that although it was Germany that required the strict and formal system of fiscal policy coordination for EMU, this chapter will finally show that, surprisingly, it has been Germany that has had the most difficulties in complying with the common rules for national fiscal policies in EMU. The making of a common European fiscal policy through the institutional system of fiscal policy coordination has thus pointed to significant limitations. This chapter will analyse the political, economic, institutional and legal foundations of European fiscal policy coordination and examine the extent to which this foundation in practice constrains national fiscal policy in EMU.

Suggested Citation

  • Jani Kaarlejärvi, 2007. "The Institutional System of Fiscal Policy Coordination," Palgrave Macmillan Books, in: Fiscal Policy without a State in EMU?, chapter 2, pages 23-52, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59010-6_2
    DOI: 10.1057/9780230590106_2
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